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Mahindra Group has decided to shut down its aircraft manufacturing business in Australia as part of its cost optimisation measures.
“We have shut down our Gipps Aero business, which was into the manufacturing of 8- and 10-seater planes in Australia,” Mahindra & Mahindra Deputy Managing Director and Group CFO Anish Shah told reporters in the post-earnings media call.
Mahindra had acquired 75.1 per cent stake each in two Australian companies to cash in on a growing demand for economical air transport and to also diversify operations. The acquisition in Aerostaff Australia and Gippsland Aeronautics was done jointly with Kotak Private Equity for ₹175 crore
“It is up for sale for someone who wants to buy it. But, if there is no buyer, the business has been shut down already,” Shah said on the sidelines of announcing M&M’s quarterly numbers.
In 2014, Mahindra Group got approvals to sell its Australia-made airplanes in India. Then in 2016, it floated a new company, Mahindra Airways Ltd, without elaborating its exact role.
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